Aiming to more than triple its enterprise value by 2030, the Posco group plans to focus its steel activity on respect for the environment and global growth, while fostering new growth drivers such as battery materials. rechargeable and hydrogen.
The holding company will be listed, while the steel unit Posco, as well as other companies to be incorporated as part of the holding company, will remain unlisted to allow rapid decision making.
This is to avoid undermining existing shareholder value and to avoid a conflict of interest between the holding company and the shareholders of the subsidiaries.
By keeping them unlisted, the growth value of each subsidiary will lead entirely to the shareholder value of Posco Holdings.
If a subsidiary needs more funds for its operations, Posco Holdings will do a paid-up capital increase instead of asking the subsidiary to raise funds by getting listed, the company said.
The holding company will also add more experts in each field of activity to its board of directors and increase the proportion of external directors.
Posco Holdings will be largely responsible for the development of future business portfolios; reorganize the group’s companies to create synergies; set up research and development strategies for the group; and lead the management of environmental, social and corporate governance.
With the vision of becoming “the world leader in business for a sustainable future of mankind”, the Posco group plans to seek growth in seven main activities: steel; rechargeable battery materials; lithium and nickel; hydrogen; energy; building and infrastructure; and the food.
Posco’s plan to launch a holding company, Posco Holdings, was approved by the board of directors earlier this month. The holding company will own a 100 percent stake in the steelmaking unit and guarantee additional investments for new businesses.
By Kim So-hyun (firstname.lastname@example.org)